Rip Curl and Kathmandu shut down 175 stores and lay off 1,300 employees

Kathmandu will shut down 175 stores after falling victim to the coronavirus pandemic - leaving 1,300 employees out of work.

The retailer, which also owns Rip Curl, announced it would close all of its stores across Australia on Friday.

Staff will be stood down for four weeks without pay. Senior executives will see their salaries slashed by 20 per cent, ABC reported.

The brand's New Zealand stores have already closed after the country went into a four-week lockdown on Wednesday night.

The retailer will continue operate online and its head office staff will work from home. 

The move comes as stricter social distancing rules are implemented to slow the spread of the deadly coronavirus. 

Kathmandu will shut down 175 stores and lay off 1,300 employees after falling victim to the coronavirus pandemic

Kathmandu will shut down 175 stores and lay off 1,300 employees after falling victim to the coronavirus pandemic

The retailer, which also owns Rip Curl, announced it would close all of its stores across Australia on Friday

The retailer, which also owns Rip Curl, announced it would close all of its stores across Australia on Friday

'Our total focus is to protect the health and wellbeing of our terms and customers and ensure business continuity,' Kathmandu CEO Xavier Simonet said.

'I am so grateful to all our teams around the world for their resilience in this situation of uncertainty and challenges.' 

Australia currently has 3,050 cases, 13 people have died from the illness.

Australians are being urged to stay at home if they can, and only leave their houses if it is essential. 

The restrictions have seen a number of businesses close, including Glassons, Portmans, General Pants, Peter Alexander, Smiggle and Just Jeans due to declining business.

Pubs and gyms have been forced to close to prevent mass gatherings.

Cafes and restaurants are only allowed to offer a takeaway service.  

Thousands of Australians have already been left without work as a result of the changes. 

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